Electrowinning is a time-tested method for removing impurities from metals, and it’s able to run on clean electricity and at the same temperature as a fresh cup of coffee. Could it help clean up heavy industry by replacing the gigantic coal-fired blast furnaces used to purify iron, a key ingredient in steelmaking?
Thursday’s round was led by Capricorn Investment Group and Temasek Holdings, and included previous investors Breakthrough Energy Ventures, Lowercarbon Capital, and S2G Investments. It also included Rio Tinto, Roy Hill, and BHP’s venture capital arm, representing some of the world’s largest iron ore suppliers; leading steelmakers Nucor and Yamato Kogyo; and major iron and steel buyers organizations Interfer Edelstahl Group and Toyota Tsusho Corp., the trading arm of Toyota Group and supplier to Toyota Motor Corp.
“This broad, very sophisticated, strategic investor base gives us a vote of confidence that our solution can potentially be an integral part of the value chain,” Nijhawan said.
The new funding will finance Electra’s first demonstration-scale project, which aims to produce about 500 tonnes of high-purity iron annually when it opens next year — a droplet in the nearly 1.9 billion tonnes of steel produced globally in 2023. The company hopes to have a commercial-scale production site, of undisclosed size and capacity, operational in 2029, Nijhawan said.
Steelmaking accounts for 7% to 9% of global greenhouse gas emissions, and most of those emissions are tied to the process of purifying iron in blast furnaces that burn metallurgical coal at temperatures of around 1,600 degrees Celsius.
Cutting that carbon footprint requires shifting to electric arc furnaces that use electricity to melt a mix of steel scrap and purified iron into new steel. But to clean up the industry, the purified iron going into those furnaces must first be produced in ways that don’t choke the atmosphere.
“We are replacing how iron has been made for centuries,” Nijhawan said. “When you think about that transition, you think about a long-term view of how you create a stable business in that environment.”
Electra’s approach, electrowinning, is already used to purify metals such as copper, nickel, and zinc. It works by dissolving iron ores into an aqueous acidic solution to separate iron ions from impurities in the ores, and then electrifying the solution to deposit pure iron onto metal plates.
